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Operating Margin % is calculated as Operating Income divided by its Revenue. Emerson Electric Co's Operating Income for the three months ended in Jun. 2024 was $796 Mil. Emerson Electric Co's Revenue for the three months ended in Jun. 2024 was $4,380 Mil. Therefore, Emerson Electric Co's Operating Margin % for the quarter that ended in Jun. 2024 was 18.17%.
Good Sign:
Emerson Electric Co operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Emerson Electric Co's Operating Margin % or its related term are showing as below:
Emerson Electric Co's 5-Year Average Operating Margin % Growth Rate was 0.80% per year.
Emerson Electric Co's Operating Income for the three months ended in Jun. 2024 was $796 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2024 was $2,649 Mil.
Warning Sign:
Emerson Electric Co has recorded a loss in operating income at least once over the past 3 years.
The historical data trend for Emerson Electric Co's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Emerson Electric Co Annual Data | |||||||||||||||||||||
Trend | Sep14 | Sep15 | Sep16 | Sep17 | Sep18 | Sep19 | Sep20 | Sep21 | Sep22 | Sep23 | |||||||||||
Operating Margin % | Get a 7-Day Free Trial | 16.98 | 16.59 | 15.15 | 17.07 | 18.19 |
Emerson Electric Co Quarterly Data | ||||||||||||||||||||
Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | |
Operating Margin % | Get a 7-Day Free Trial | 21.08 | 18.90 | 8.87 | 16.34 | 18.17 |
For the Specialty Industrial Machinery subindustry, Emerson Electric Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Industrial Products industry and Industrials sector, Emerson Electric Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Emerson Electric Co's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Emerson Electric Co's Operating Margin % for the fiscal year that ended in Sep. 2023 is calculated as
Operating Margin % | = | Operating Income (A: Sep. 2023 ) | / | Revenue (A: Sep. 2023 ) |
= | 2759 | / | 15165 | |
= | 18.19 % |
Emerson Electric Co's Operating Margin % for the quarter that ended in Jun. 2024 is calculated as
Operating Margin % | = | Operating Income (Q: Jun. 2024 ) | / | Revenue (Q: Jun. 2024 ) |
= | 796 | / | 4380 | |
= | 18.17 % |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Emerson Electric Co (NYSE:EMR) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Thank you for viewing the detailed overview of Emerson Electric Co's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Matthew S Levatich | director | HARLEY-DAVIDSON MOTOR COMPANY, 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208 |
Surendralal Lanca Karsanbhai | officer: Exec Pres Auto Sols | C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136 |
Mark A Blinn | director | 5215 N. O'CONNOR BLVD., SUITE 2300, IRVING TX 75039 |
Ram R. Krishnan | officer: Executive Vice Pres & COO | C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136 |
Mckelvey James Morgan Jr. | director | 2645 SOUTH BAYSHORE #802, MIAMI FL 33133 |
Joshua B. Bolten | director | ROCK CREEK GLOBAL ADVISORS, 1401 I STREET NW, SUITE 1120, WASHINGTON DC 20005 |
Arthur F Golden | director | 450 LEXINGTON AVE, NEW YORK NY 10017 |
Easter William H Iii | director | 370 17TH ST, STE 2500, DENVER CO 80202 |
Vidya Ramnath | officer: Senior VP & CMO | C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136 |
Nicholas J. Piazza | officer: Senior VP & CPO | C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136 |
Lisa Flavin | officer: Sr. VP & CCO | 8300 MARYLAND AVENUE, ST. LOUIS MO 63105 |
Leticia Goncalves Lourenco | director | C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136 |
Peter Zornio | officer: Chief Technology Officer | C/O EMERSON ELECTRIC CO., 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136 |
Frank J Dellaquila | officer: Sr. V. P. and Controller | C/O RELIANCE STEEL & ALUMINUM CO., 16100 N. 71ST STREET, SUITE 400, SCOTTSDALE AZ 85254 |
Sara Yang Bosco | officer: Sr. VP, Secy & Gen. Counsel | 8000 W. FLORISSANT AVENUE, ST. LOUIS MO 63136 |
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